Final answer:
A journal entry for Cardullo's purchase of inventory would involve debiting the Inventory account and crediting the Cash account, reflecting the increase in inventory and the decrease in cash.
Step-by-step explanation:
The question posed relates to the creation of a journal entry for the purchase of inventory by a company named Cardullo's. On June 1, 2013, Cardullo bought a case of Vermeiren Cookie Spread for $200 as inventory and paid for this in cash. The proper journal entry to record this transaction would be to debit the Inventory account and credit the Cash account as it reflects a decrease in cash and an increase in inventory, which are both assets from the perspective of the company.
Journal Entry:
Date: June 1, 2013
Account: Inventory
Debit: $200
Account: Cash
Credit: $200
On June 1, 2013, Cardullo purchased a case of Vermeiren Cookie Spread as inventory from its supplier for $200 and paid in cash. The transaction is recorded using a journal entry, which is a formal record of a financial transaction. In this journal entry, the inventory account is debited for the value of the purchase ($200), indicating an increase in inventory, and the cash account is credited for the same amount, indicating a decrease in cash.
This transaction impacts the company's financial position by increasing assets in the form of inventory while simultaneously decreasing cash or cash equivalents.